Rising Treasury Rates Half Finished in Their Return to Normal
After bottoming at 1.4% a year ago, 10-year rates jumped much closer this week to the 3.0%-3.5% range that would be expected with current inflation.
Though markets swung wildly again this week, prices on the S&P 500 fell less than 1% despite a soft Friday, which was hit by a revised World Bank forecast of slower world economic growth.
Bonds finally bottomed this week and improved later in the week as data suggested that just maybe the U.S. economy wasn't so brutally strong as to demand immediate tightening of monetary policy. Lower generalized world inflation rates didn't hurt bonds this week, either.